ISLAMABAD: The Federal Board of Revenue (FBR) has announced an automated system of export facilitation scheme which will decrease the lead time, promote ease of doing business and minimise the human interaction between exporters and the taxmen.
A meeting, chaired by FBR Chairman Shabbar Zaidi, on Wednesday reviewed the automated system which will make the overall environment business friendly and increase the rating of Pakistan in “Doing Business”.
An official statement issued after the meeting stated that various aspects of these schemes were examined and it was apprised that all prevailing schemes have been fully automated and all process from filing of application to approval and afterwards from the import of raw materials to its exports, has been automated and businessman is not required to visit any offices.
Zaidi stressed on the participants that awareness should be created among the business community about the benefits of these schemes so that maximum number of exporters may use these schemes.
He further instructed that these schemes may be merged so that there is one comprehensive scheme which is simple, trade friendly and easy to use.
Under the Export Oriented Unit Scheme, duties and taxes on all the imported goods, including machinery, are exempted against certain conditions.
In the Manufacturing Bond Scheme, a manufacturer-cum-exporter can establish a manufacturing bond and import raw material used for the manufacture of finished goods without any upfront payment of duty/taxes. This saves cost and hassle of claiming refunds/drawbacks.
The Duty and Tax Remission of Exports Scheme (DTRE) operates under the simple concept of no payment of duties/taxes and no duty-drawbacks. The commercial exporters can also get DTRE approvals besides manufacturers.
The Temporary Importation Scheme entails suspension / exemption from duties/taxes against securities on import of accessories like buttons, zippers, labels etc. used for manufacture and export of goods.
This is the easiest scheme available for the exporters wherein the securities are released after exportation of goods.
The goods imported into and exported from the Export Processing Zones are totally free from duty and taxes. Similarly, under the Duty Drawback Scheme, the FBR repays the customs duties paid on the importation of inputs which have been used in the production, manufacture and processing of goods exported out of Pakistan.
Published in Dawn, September 5th, 2019